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Malaysia says airlines must fully refund passengers for delays of 5 hours or more

The transport ministry said refunds will need to be offered via the original means of payment

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Malaysia said airlines found to be contravening the new rules may be fined a maximum of US$46,000. Photo: Reuters
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Airlines in Malaysia will have to give passengers the option of a refund if their flight is delayed for five hours or more, as the Southeast Asian nation joins countries strengthening consumer air-travel rights.

Transport regulators around the world are pressuring carriers to improve standards after a series of flight schedule meltdowns and questionable business practices sparked calls for reform. In Australia, Qantas Airways Ltd. was sued for allegedly selling seats on thousands of cancelled flights.

Malaysia’s new rules, which take effect from Monday, will also apply to passengers who chose not to proceed with the delayed flight and opt to purchase a different flight altogether.

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The country’s flagship carrier has been suffering a series of disruptions due to ongoing engine-related problems on its Airbus SE A330 aircraft. Malaysia Airlines said earlier this month that it needs to reduce its flight network between now and December.

Refunds will need to be offered via the original means of payment, Malaysia’s transport ministry said.

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Earlier this year, the US Department of Transportation ordered airlines to provide automatic refunds for flights that are axed or significantly delayed. Protections for travellers in the US were strengthened after spiralling complaints about airlines refusing or delaying refunds.

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